Foreign vs Domestic HRC Analysis: Little to No Import Appeal

Foreign steel imports from two of the three regions tracked by Steel Market Update have lost their price advantage over domestic steel, according to our latest foreign versus domestic hot-rolled steel price analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for just one region remain cheaper than domestic steel (by just 2%). US HRC prices are potentially 3–4% cheaper than imported steel from the other two regions. The potential discount on imported products has been narrowing since peaking in May.

The following calculation is used by SMU to identify the theoretical spread between foreign HRC prices (delivered to US ports) and domestic HRC prices (FOB domestic mills). This is only a “theoretical” calculation as freight costs, trader margins, and other costs can fluctuate, ultimately influencing the true market spread. The below analysis compares the SMU US HRC weekly index to the CRU HRC weekly indices for Germany, Italy, and Far East Asian ports.

Brett Linton

Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

Brett Linton

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